Penny Stock Crowd Gets Paid to Turn Up the Heat On Pan American Goldfields Ltd [PINK:MXOM]

If we are to believe everything Penny Stock Crowd says about Pan American Goldfields Ltd [PINK:MXOM] in its latest promotional email on that stock, we would be left scratching our heads as to why we have not got in as much as possible. Luckily, we quickly remembered that the email itself is nothing but a paid, and therefore fairly biased, advertisement.

In fact, Pan American Goldfields has often got a promotional disguise, so Penny Stock Crowd’s touting email on MXOM shares, which, by the way, costs $10,000, should hardly take anyone by surprise. This time, however, the pump job seems to be more pompous than ever as it boasts about record gold and silver production levels and huge revenue projections. The email also provides a brief overview of other gold companies’ rose to fame and presents MXOM as a lucrative acquisition opportunity for the world’s leading gold producers.

So far so good. But let’s look at the bigger picture. Having been established in 1997, it was not until 2006 that the company changed its business after wasting nine years failing to figure out any profitable business opportunities. Another name change occurred in 2010. To date, MXOM has spent in excess of $52 million dollars chasing down success. Of course, the odds could quickly turn upside down provided that MXOM‘s production rates increase substantially.

Another event that raises concern is the suspiciously perfect synchronization of the paid promotion on the stock, on the one hand, and the publication of an extensive company presentation aimed to paint as rosy a picture about MXOM as possible, on the other. This seemingly perfect timing kind of left us with a sneaking suspicion that there might be some kind of a correlation between both efforts.

Last but not least, this is by far not the first time Penny Stock Crowd has embarked on a pump job in pennyland. In fact, the latter has a rather extensive historical dossier showing all the penny stocks it has promoted so far, as well as their subsequent chart failures. Let us take the stock of Mediatechnics Corporation [PINK:MEDT] for example. Penny Stock Crowd got a mission to raise awareness about MEDT shares on Feb. 23, 2013, only to slash their market value by a whopping 37.50% on the very next session. And there’s more to it because MEDT stock has since lost an aggregate 62.50% from its pre-pump market price.